Texas Security Deposit Laws in 2026: The 30-Day Return Rule

Texas Property Code section 92.102 defines a security deposit as money advanced primarily to secure performance under a residential lease. The definition excludes a rental application deposit and advance rent, so a lease and receipt should identify each payment by its actual purpose instead of grouping every move-in charge under “deposit.”

Subchapter C applies to residential leases. Its security-deposit provisions regulate handling, deductions, accounting, and return, but they do not state a general statewide dollar or rent-multiple ceiling for a conventional residential security deposit. Subsidized housing, local programs, or a different property category may be subject to separate requirements.

Section 92.103 requires the landlord to refund the security deposit on or before the 30th day after the tenant surrenders the premises, subject to the forwarding-address rule in section 92.107. “Surrender” matters: the safest closeout record identifies the move-out date, return of possession, keys returned, and the address supplied for the refund.

A lease may make advance notice of surrender a condition of refunding the deposit only when that requirement is underlined or printed in conspicuous bold type. A generic notice clause buried in ordinary text does not satisfy the formatting condition stated in section 92.103(b).

Under section 92.107, the landlord is not obligated to return the deposit or provide the written description of deductions until the tenant gives a written forwarding address for that purpose. Failure to provide an address does not forfeit the tenant’s underlying right to the refund or accounting.

Texas added section 92.113 effective September 1, 2025. It allows notices and communications permitted or required by the security-deposit subchapter to be sent by email when the landlord and tenant previously communicated by email; the landlord or agent may designate a specific email address. Keeping a reliable physical forwarding address remains a sensible operational practice.

• · Ask for the forwarding address in the move-out instructions.
• · Keep the tenant’s written statement with the lease file.
• · Record the date possession and keys were returned.
• · Use a designated email address consistently if relying on section 92.113.

Section 92.104 permits deductions for damages and charges for which the tenant is legally liable under the lease or because of a lease breach. It expressly prohibits retaining deposit money for normal wear and tear.

Texas defines normal wear and tear as deterioration from intended use, including age-related breakage or malfunction, while excluding deterioration caused by negligence, carelessness, accident, or abuse by the tenant, household members, guests, or invitees. The decision should be based on condition evidence and reasonable cost, not a blanket repainting or replacement schedule.

• · Keep a signed move-in condition record and dated photographs.
• · Document the move-out condition before cleaning or repairs begin.
• · Separate ordinary aging from tenant-caused damage.
• · Retain invoices, estimates, photographs, and the calculation for each deduction.

When retaining all or part of the deposit, section 92.104(c) generally requires the landlord to send the remaining balance together with a written description and itemized list of deductions. The statute provides a narrow exception to the itemized-list requirement when the tenant owes rent at surrender and there is no controversy about the amount owed.

Section 92.1041 treats a refund or accounting as timely when it is placed in the United States mail and postmarked by the required date. In practice, preserving the statement, supporting documents, mailing address, and proof of mailing creates a much stronger closeout file.

Section 92.108 says a tenant may not withhold the last month’s rent on the theory that the security deposit will cover it. The landlord should still account for unpaid rent through the lease and deposit process rather than describing the deposit as automatically converted to rent.

If ownership changes, section 92.105 places responsibility on the new owner from acquisition and requires a signed statement to the tenant acknowledging the transfer and exact deposit amount. The former owner can remain liable until the deposit is received or liability is assumed as the statute describes.

Section 92.109 provides remedies when a landlord retains a deposit in bad faith. These can include $100, three times the portion wrongfully withheld, and reasonable attorney’s fees. Failure to return the deposit or provide the required itemization by the 30th day creates a statutory presumption of bad faith, subject to the forwarding-address rule and the facts.

A repeatable move-out workflow is more useful than trying to reconstruct the file after a dispute: request the forwarding address, document surrender, compare condition records, calculate only supportable deductions, prepare the itemized statement, and mail the package before the deadline.